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ST. LOUIS - Core & Main, Inc. (NYSE:CNM) reported first quarter earnings that met analyst expectations while revenue exceeded forecasts, as the specialty infrastructure distributor saw continued strength in its end markets.
However, shares fell 2.60% in pre-market trading following the earnings release.
The company posted adjusted earnings per share of $0.52 for the quarter ended May 4, in line with Wall Street estimates. Revenue rose 9.8% year-over-year to $1.91 billion, surpassing the consensus forecast of $1.85 billion.
"We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model," said CEO Mark Witkowski. He noted the company saw a "sequential step up in volume growth" compared to last quarter.
Gross profit increased 9% to $510 million, while gross margin contracted slightly to 26.7% from 26.9% a year ago. The company said this was primarily due to higher average inventory costs, partially offset by margin improvement initiatives.
For the full fiscal year 2025, Core & Main reaffirmed its outlook for net sales of $7.6 billion to $7.8 billion, representing growth of 2% to 5% compared to fiscal 2024. The midpoint of the guidance range is in line with analyst expectations of $7.75 billion.
The stock movement suggests investors may have been looking for more robust growth or margin expansion from the infrastructure products distributor.
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